Analysis of milk marketing chain in selected states of India

Dairying has become an important secondary source of income for millions of poor and rural families and has assumed the most important role in providing employment and income generating opportunities particularly for marginal and women farmers. This paper examines the milk marketing chain with to refrences selected eastern and western states of India. The primary data were collected from the 2160 sample milk producers/farmers from nine states of India comprised of seven eastern states and two western states of India. The disposal pattern indicates that in case of all the DCS households, they sold milk to dairy cooperative society and got payment on weekly interval. The milk rate realised by the milk producer was around Rs. 22–28 in case of cow milk and around Rs. 39 in case of buffalo milk. The NDCS households opted to sale their milk to private milk plant which was maximum 17 kms away from the households for which they incurred around Rs. 6–11 cost as transportation cost. The payment was provided as per requirement and milk rate realised which was around same as in case of DCS members. Few of NDCS members have sold the milk to private vendor/shop/middlemen as well as to catering services. Thus, unlike of almost 100% sale to dairy cooperative society by DCS households, NDCS households had to sale to variety of customers, where in rates are relatively lower and other facilities may not have available as prvided by dairy cooperatives. Thus, in case of NDCS households, marketing channels remains traditions and maximum marketable surplus in milk is sold through informal channels. This is in sharp contrast to sale of milk by DCS households to dairy cooperatives. The major constraint in milk marketing is the involvement of the unorganized sector. Changing the dairy-cooperative laws and regulations can reduce the unorganized sector's role in milk marketing. Strengthening the infrastructure for milk collection, transportation, processing, packaging, pricing, and marketing through dairy co-operatives can also change the minds of the milk producers. Establishment of organized network of market can benefit